Municipal supply chain performance through information sharing and stakeholder collaboration

Abstract

Background: The effectiveness of information sharing between municipalities and their stakeholders remains an important area for consideration in the improvement of supply chain performance.

Aim: This article responds to municipal service delivery challenges in South Africa by testing a model for improving supply chain performance (SCP) through information sharing (IS) and stakeholder collaboration in municipalities.

Setting: The setting includes two metropolitan municipalities in the Eastern Cape Province of South Africa.

Method: The study employed a cross-sectional survey involving 370 supply chain role players. Hypothesised relationships were tested using structural equation modelling.

Results: The results revealed that information sharing is positively associated with stakeholder trust, governance and administration and stakeholder relationship continuity. Stakeholder trust, governance and administration, and stakeholder relationship continuity are positively related to the fluency of stakeholder collaboration. Full mediation between the constructs was observed for all relationships tested in the study.

Conclusion: The article demonstrates the application of information sharing through, stakeholder trust, governance and administration, and stakeholder relationship continuity in predicting supply chain performance in South African municipalities. The overall outcome of the study is that information sharing and stakeholder relationships are essential drivers of municipal supply chain performance.

Contribution: The study contributes to supply chain management literature by providing insights into how municipalities can utilise information to improve stakeholder relationships and enhance service delivery performance. This study could unlock some keys to overcoming municipal service delivery challenges in South Africa.